Canada Urges Lockheed Martin for Better F-35 Deal

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The Canadian federal industry minister is urging U.S.-based Lockheed Martin to offer more economic advantages in Canada for the proposed purchase of 88 F-35 fighter jets.

If not, Industry Minister Mélanie Joly mentioned in a recent interview on Radio-Canada’s Les coulisses du pouvoir that Ottawa might consider a smaller fleet of F-35s and acquiring a second fleet of Gripen-E fighter jets made by Sweden’s Saab, which has suggested assembling the Gripen jets in Canada.

Joly’s statements come as Prime Minister Mark Carney deliberates on the $27.7-billion fighter jet deal.

She outlined two potential paths for the ongoing F-35 assessment initiated in March, shortly after Carney assumed office and amid U.S.-Canada tariff tensions.

One option is to negotiate additional economic benefits from Lockheed Martin to uphold the full contract.

Alternatively, Joly suggested the possibility of procuring a reduced quantity of F-35s.

Canada is obligated to purchase a minimum of 16 of the planned 88 Lockheed Martin jets.

A woman in a suit sits in a chair in front of a Canadian and Quebec flag. A man in a suit sits across from her facing away from the camera.
Industry Minister Mélanie Joly stated that Ottawa could negotiate more economic benefits from Lockheed Martin in return for maintaining the full contract for 88 F-35 jets. (Radio-Canada/David Richard)

“The decision rests with the prime minister. However, my aim is to maximize the benefits from the F-35 contract with Lockheed Martin and to continue dialogues with Saab,” Joly remarked.

Although managing a mixed fleet could pose challenges for the Canadian Armed Forces, Joly expressed confidence, especially if additional benefits are offered.

“All G7 nations operate a mixed fleet,” she highlighted.

As Canada readies to boost its defense spending significantly, Joly identified three priorities: enhancing the country’s military capabilities, reinforcing geopolitical ties through new partnerships, and fostering job creation in the Canadian defense industry.

“I am focused on ensuring that Canadian taxpayers’ funds are utilized prudently to reduce reliance on the U.S. and stimulate job growth in Canada,” Joly emphasized.

During recent testimony before a parliamentary committee, two senior officials from National Defence and the Canadian Armed Forces strongly favored the F-35.

Deputy minister Stefanie Beck and Lt.-Gen. Jamie Speiser-Blanchet praised the benefits of “fifth-generation” fighter jets like the F-35.

This classification refers to the aircraft’s stealth capabilities against enemy detection systems and rapid data processing from various sources.

“Having a fifth-generation aircraft is crucial as that is what our adversaries possess,” Beck emphasized.

Speiser-Blanchet, head of the Royal Canadian Air

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